Foreign Investor Guide

THE F.I.R.P.T.A. TEST 3 Steps to determine if F.I.R.P.T.A. applies to your transaction.

#1 is Seller a naturalized US Citizen or a US Resident Alien?

YES STOP This transaction is exempt from F.I.R.P.T.A. withholding.

NO

YES

#3 Does the Buyer intend to occupy the property as their principal residence*?

#2 Is the Sales Price $300,000.00 or less?

NO STOP This transaction is subject to F.I.R.P.T.A. Withholding.

NO STOP This transaction is subject to F.I.R.P.T.A. Withholding.

YES STOP This transaction is exempt from F.I.R.P.T.A. withholding.

*IRS defines a principal residence as the buyer or member of their family must have definite plans to reside at the property for number for days that represent at least 50% of the days in the calendar year for the first 2 years following close of escrow.

All content contained herein is provided for informational purposes only and is not intended to be a substitute for professional legal and or financial advice. Please consult your legal counsel or tax professional for more information.

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